@boilingsteam 100% agreed, and I will add that Nitendo and Sega paved the way with their consoles a few years earlier, at least in Europe where the cartridges looked very attractive to European publishers ravaged at the time by rampant computer Piracy.

The consoles made most small studios to close doors eventually due to Sega and Nintendo's policies forcing the publisher to pay hefty licenses for the dev kits and making them pay for the cartridges in advance and in too large quantities, yes; kids couldn't pirate any more but also couldn't buy that many expensive games on a market completely saturated of shovel-ware made in USA/Japan. European studios had to eat unsold cartridges for breakfast.

By the time the Playstation came game development had become so expensive and games required such a level of polish and complexity that it was impossible for a lone bedroom coder or a small group/company to compete, that it almost destroyed the gaming industry in Europe overnight.

Some well known studios were directly absorbed by Sony such as Psynogsys/DMA (Lemmings) from their ashes later arose Rockstar. (If my memory serves me well) the over financialization began at this point I think.